Home loan demand remains strong, with new data showing the total number of dwelling commitments approved surged 0.9% throughout the month of November.
According to the latest housing finance data from the Australian Bureau of Statistics, 54,603 home loans were written throughout the month of November – up from 54,096 loans written the month prior.
“The last time we saw more than 54,500 home loans approved in one month was back in July 2016,” Mortgage Choice chief executive officer John Flavell said.
“This data would suggest the threat of higher interest rates is doing little to stifle home loan demand.”
Throughout the course of November, the number of loans approved for the construction of dwellings, as well as the purchase of new and established dwellings, all increased.
“As per the data, there was a 2.3% jump in the number of loans approved for the construction of dwellings. Meanwhile the number of loans approved for the purchase of new and established dwellings increased by 3.3% and 0.6% respectively,” Mr Flavell said.
“Pleasingly, the total value of all home loans approved also increased throughout the month of November.
“The value of all dwelling commitments approved throughout the month of November exceeded $33 billion – up 2.2% from just over $32 billion the month prior.”
More than $19 billion in owner occupied home loans were approved throughout the month, while the value of all home loans approved for investment purposes exceeded $13 billion.
Mr Flavell said he wasn't surprised to see the lift in the value of all home loan commitments.
“Data from Core Logic found property values across the combined capital cities rose 0.2% in November, taking the median dwelling price to $610,000,” he said.
“Moving forward, I wouldn't be surprised to see another lift in the value of all dwelling commitments approved in December, as recent data from Core Logic found property values rose 1.4% last month.
“Furthermore, I wouldn't be surprised to see a lift in overall home loan demand. December is a notoriously strong month for home loan enquiries and approvals, as many borrowers look to buy property and settle in their new home during the festive period.”